Annual Report: 2021
ASA & Associates LLP's independent auditor's report for Lava International Limited focuses on the audit of the consolidated financial statements as of March 31, 2021. The report expresses an unqualified opinion, stating the financial statements present a true and fair view in conformity with Indian Accounting Standards (Ind AS) and the Companies Act, 2013.
Basis for Opinion:
The audit was conducted according to Standards on Auditing (SAs) under Section 143(10) of the Companies Act, 2013. Sufficient and appropriate audit evidence was obtained to support the audit opinion, and the firm remained independent and fulfilled ethical responsibilities.
Other Information:
The Holding Company's Board of Directors is responsible for other information, including the Director's Report and Annexures, but excluding the consolidated financial statements. The audit opinion does not cover this other information, and no assurance conclusion is expressed.
Responsibilities of Management:
Management is responsible for preparing consolidated financial statements that provide a true and fair view, maintaining adequate accounting records, selecting and applying appropriate accounting policies, making reasonable judgments and estimates, and designing, implementing, and maintaining adequate internal financial controls. They are also responsible for assessing the Group's ability to continue as a going concern.
Auditor's Responsibilities:
The auditor's objectives are to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report. This includes assessing risks, understanding internal control, evaluating accounting policies, concluding on the appropriateness of management's use of the going concern basis, and evaluating the overall presentation of the financial statements. The auditor is also responsible for expressing an opinion on whether the Group has adequate internal financial controls with reference to consolidated financial statements in place and the operating effectiveness of such controls.
Other Matters:
The report notes that financial statements of seven subsidiaries and one trust, whose assets and revenues are significant, were audited by other auditors, and reliance is placed on their reports. Additionally, the auditors relied on the Holding Company’s management conversions of financial statements of three foreign subsidiaries. The report also mentions unaudited financial statements from 8 subsidiary companies. The auditors’ opinion is not modified with respect to these matters.
Report on Other Legal and Regulatory Requirements:
The auditor reports that all necessary information and explanations were obtained, proper books of account have been kept, the consolidated financial statements comply with Ind AS, and none of the directors are disqualified under Section 164(2) of the Act. They also confirm the adequacy and operating effectiveness of internal financial controls and the compliance of directors' remuneration with Section 197 of the Act. The report includes specific observations regarding pending litigations, provision for foreseeable losses on long-term contracts, and the absence of amounts required to be transferred to the Investor Education and Protection Fund.
Annexure A - Report on Internal Financial Controls:
This section includes an opinion on the internal financial controls over financial reporting of Lava International Limited and its subsidiaries incorporated in India. The respective Boards of Directors are responsible for establishing and maintaining internal financial controls. The auditor's responsibility is to express an opinion on these controls based on their audit. The auditor believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion on the Company's internal financial controls system.
The auditor expresses an opinion that the Holding Company, its subsidiary companies, its joint ventures and its associates have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021.
Other Matters in Annexure A:
The auditor's report on internal financial controls is based on the corresponding reports of the auditors of the subsidiaries, associate and joint venture. The auditor states their opinion is not modified in respect of the above matter with respect to the reliance on representations provided by management.
The consolidated balance sheet shows total assets of Rs 24,375.49 million. The statement of profit and loss showed revenue from operations of Rs 55,128.74 million. The report is signed by Prateet Mittal, a partner at ASA & Associates LLP, dated September 21, 2021, in Gurugram.
Key personnel of Lava International Limited are identified, and information regarding authorized, issued, and subscribed share capital is detailed.
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